Bitcoin (BTC) surged to a new record above $124,000 last week, buoyed by investor optimism over Federal Reserve policy easing and surging institutional inflows. However, the leading cryptocurrency has since retreated by nearly 7%, slipping to around $113,600 as volatility returned to digital asset markets.
Analysts highlight the $116,000-$117,000 zone as a crucial support range, tested following a wave of liquidations that erased more than $800 million in leveraged positions. A decisive break below this band could open the door to deeper losses, with $112,000 identified as the next significant level to watch. On the upside, Bitcoin faces immediate resistance between $120,000 and $123,000, a zone that must be cleared to revive bullish momentum and set the stage for a potential push toward $130,000 later this year.
Technical indicators paint a mixed picture. Short-term moving averages lean bearish, reflecting the recent correction, while long-term averages continue to signal underlying strength. The Relative Strength Index (RSI) sits near 45, suggesting neutral momentum but leaving room for further downside if selling pressure intensifies. Chart watchers also point to a possible double-top formation near $123,000, which, if confirmed, could signal a deeper correction.
Macro conditions remain a central driver. Traders are awaiting clarity from the Federal Reserve, with markets closely tracking commentary from the Jackson Hole Symposium. Inflation data and capital flows into Bitcoin ETFs will also shape near-term direction.
While long-term sentiment remains constructive, Bitcoin’s ability to hold above the $116,000 threshold will be key in determining whether the current move is a healthy consolidation or the start of a broader retracement.
Ethereum (ETH) is trading around $4,190 after retreating from a recent high of $4,788, reflecting broader market volatility that followed Bitcoin’s correction from record levels. Despite the dip, analysts suggest that Ethereum’s chart structure remains constructive provided it holds above key support levels.
The $4,150-$4,200 band has emerged as a critical support zone. Ethereum has tested this range multiple times, with buyers stepping in to defend against deeper declines. Should ETH break below this threshold, analysts warn of a possible slide toward the $3,900-$4,000 area. Conversely, resistance remains concentrated near $4,300-$4,350, a level that has repeatedly capped upside attempts. A clean breakout above this range could clear the way for a retest of $4,788 and potentially set the stage for a push toward $5,000.
From a technical standpoint, momentum indicators remain mixed. The Relative Strength Index (RSI) sits in neutral territory, leaving room for either renewed buying or extended consolidation. Moving averages show short-term hesitation but long-term resilience, underlining Ethereum’s ongoing appeal as a core digital asset.
Beyond charts, Ethereum continues to benefit from strong macro and ecosystem drivers. Institutional inflows into ETH-linked products, growing activity in decentralized finance (DeFi), and supportive regulatory moves around stablecoins are providing a favorable backdrop. Analysts argue that these factors could underpin a medium-term rally, with some forecasting price targets in the $6,000-$8,000 range if bullish momentum resumes.
For now, Ethereum’s ability to defend the $4,150-$4,200 zone will be key in determining whether the latest move is a pause before the next rally or the beginning of a deeper retracement.
